U.S. energy firms this week cut the number of oil rigs operating for a fourth time in the past five weeks as some drillers follow through on plans to spend less on new wells this year.
Source: www.reuters.com
For the week to Feb. 1, U.S. oil companies cut 15 oil rigs, bringing the total count down to 847. This was the lowest count since May 2018 but higher than a year ago when 765 rigs were active. There have been four cuts in the past five weeks as some drillers follow through on plans to spend less on new wells this year amid forecasts for lower crude prices. Including gas rigs, there were a total of 1,045 rigs active in the U.S. last week. Energy specialist, Simmons & Co forecasts the average combined oil and gas rig count will fall from 1,032 in 2018 to 999 in 2019 before rising to 1,087 in 2020.
